This year’s new college graduates are facing a challenging job market, more difficult than last year’s, which was already tough for the class before that. As of March, the unemployment rate for recent grads rose to 5.8%, up from 4.6% the previous year, while underemployment reached 41.2%. Economists like Allison Shrivastava describe the current landscape as “frozen,” with both employers and job seekers uncertain about the future. Julia Abbott, a psychology major from James Madison University, reported applying for over 200 jobs with only minimal interview returns, reflecting widespread frustration.
Internship opportunities, a crucial indicator of job prospects for new grads, have significantly decreased. Listings in early spring lagged by 11 percentage points compared to last year, suggesting a shrinking pathway for entry-level roles that typically don’t require experience. Despite historically lower unemployment levels for graduates, the gap has narrowed, diminishing the perceived advantages of holding a bachelor’s degree.
Compounding these job market challenges, the Trump administration is reinstating federal student loan repayments, impacting many graduates financially. A TransUnion report revealed that a record 20.5% of federal student loan borrowers are already at risk of default.
Economists warn of an uncertain economic outlook, with hiring projections declining. Recent employer surveys indicate only 24.6% plan to expand their entry-level hiring, the lowest since autumn 2020. Graduates are adjusting their expectations, with many abandoning their “dream job” aspirations. The sense of worry and anxiety about entering the workforce is palpable, especially among seniors like Abbott, who feel unprepared and anxious about the future.
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